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📊 Credit Markets

Surge's credit markets let borrowers and lenders meet on transparent, programmable terms. Instead of a single opaque pool or a custodial black box, Surge offers variable and fixed-rate markets where liquidity is shared, moved on demand, and always auditable.

How It Works

Variable and fixed markets

  • Variable market - The primary market. Borrowers pay a utilization-driven floating rate; lenders earn yield that moves with demand. All deposits land here first.
  • Fixed-rate markets - Optional tranches (e.g. 6%, 8%) where borrowers lock in a rate and lenders earn a fixed supply rate. Liquidity is moved from the variable pool when borrowers take fixed-rate loans and moved back on repay. There is no duplication or rehypothecation.

Borrowers choose which market fits their needs. Lenders can opt in to fixed markets and control how much of their capital is exposed to each. One liquidity base, multiple rate options, and clear rules for how funds flow.

Why This Design

  • Two rate choices from one liquidity base. Borrowers can choose fixed or variable pricing without splitting into isolated products, and LPs can control exposure per market.
  • Non-custodial and verifiable. BTC collateral remains in Vault scripts on Bitcoin; utilization, rates, and accounting are on-chain and auditable.
  • Yield from real borrowing demand. Returns come from BTC-collateralized credit activity (and liquidation flow where applicable), not token subsidies or circular leverage.
  • Capital stays deep instead of fragmented. Liquidity is pooled canonically and routed deterministically, improving depth and execution quality.

Surge's credit markets are built for Bitcoin-native finance: transparent, programmable, and aligned with real credit demand rather than speculation or custodial intermediation.

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